200 hour MA approached as MA comes down to meet the price
The EURUSD remains between the 100 and 200 hour MA (blue and green lines in the chart below).
The price is down on the day - Friday closed at 1.1435 and we trade at 1.14267 - and the pair also moved below an upward trend line at 1.1419, but is back above. On the rise, the price continues to get closer to the 200 hour MA as the MA tracks lower.
The 200 hour MA (green line) is at 1.1433. The price of the EURUSD has not traded above the 200 hour MA since August 1st. The high on Friday reached 1.14446. That level and the 38.2% of the move down from the July 31 high comes in at 1.14703. Those are two targets on a break of the 200 hour MA.
Until that 200 hour MA is broken, however, traders have to respect the MA line. Hence we may see traders lean against the MA line with close stops on a break above. Holding the level could see the dip buyers (looking for more upside) exit and push the price down toward the 1.1389 and the 100 hour MA at 1.1375. On Friday, that MA saw the price base against the level and track higher. SO I would also expect support there today (little on the calendar).
When the price trades between the "goal posts" defined by the 100 and 200 bar MA, the buyers and sellers are battling it out. Getting above the 100 is bullish but the break above the 200 hour MA confirms the break.
PS the GBPUSD is also close to its 200 hour MA at 1.27667 and technically has the same battle going on.
